(Alliance News) - Stocks in London are set to open higher on Friday, as investors respond to positive trading in New York following 'Goldilocks' data.

IG says futures indicate the FTSE 100 to open up 22.6 points, 0.3%, at 7,552.33 on Friday. The index of London large-caps closed 2.06 points higher at 7,529.73 on Thursday.

Sterling was quoted at USD1.2696 early Friday, little changed from USD1.2695 at the London equities close on Thursday. The euro traded flat at USD1.0835. Against the yen, the dollar was quoted at JPY147.83, up versus JPY147.66.

In early economic news, consumer confidence in the UK has reached its highest level in two years as optimism for the coming 12 months strengthens, according to a long-running survey. GfK's consumer confidence index rose by three points to minus 19 this month – its best headline score since January 2022.

Confidence in personal finances gained two points and now stands at zero, ending 24 consecutive months of negative scores and "the best single indicator for how the nation's households feel about their income and expenditure", GfK said.

In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.6%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.2%.

"Across the Atlantic, the US released its latest GDP update and the data was as good as it could possibly get," noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

US economic growth was markedly stronger than expected at the end of last year, numbers showed on Thursday, suggesting the world's largest economy was coping well with historically high interest rates. Further, inflation pressures - according to personal consumption expenditures index - eased during the fourth quarter.

The data suggests that the US economy could be on track for a so-called 'soft landing' - where inflation is managed to be brought down to target, without causing a recession.

Monthly PCE data for December, including the Federal Reserve's preferred core measure, are released at 1330 GMT on Friday. The next Fed decision is on Wednesday next week.

However, a rebound in energy prices could see inflationary pressures return. Brent oil was trading at USD82.04 a barrel early Friday, higher than USD81.37 late Thursday.

In Asia on Friday, the Nikkei 225 index in Tokyo closed down 1.3%. In China, the Shanghai Composite was marginally lower, while the Hang Seng index in Hong Kong was down 1.6%. Financial markets in Sydney were closed for Australia Day.

Gold was quoted at USD2,022.38 an ounce early Friday, higher than USD2,015.06 on Thursday.

In Friday's UK corporate calendar, trading statements are expected from WH Smith and YouGov, plus half-year results from Superdry.

By Elizabeth Winter, Alliance News deputy news editor

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